Karachi, July 7, 2025 – In a fiery appeal to the government, the Union of Small and Medium Enterprises (Unisame) has blasted the imposition of cash withdrawal tax, branding it an unfair and irrational burden on honest entrepreneurs and everyday citizens alike.
Speaking out strongly, Unisame President Zulfikar Thaver didn’t hold back. “This tax defies logic,” he declared. “Taxation should be applied on profit, not on one’s own cash savings. Banks already deduct 20% withholding tax on profits — and then taxing cash withdrawal from those same funds? That’s nothing short of double taxation.”
Thaver argued that the Federal Board of Revenue (FBR) has completely missed the mark on equity and justice. “This isn’t just a bad policy; it’s a blatant disregard for economic reality,” he said. Unisame believes the FBR has failed to consult with stakeholders who truly understand the day-to-day needs of small and micro enterprises.
He emphasized that small businesses often need to make bulk cash withdrawals to pay vendors, laborers, or meet emergency expenses. “Hospitals refuse cheques and credit cards in critical moments — people need cash at hand to survive. Is the government punishing us for being prepared?” Thaver asked.
The union also pointed out that a cash withdrawal limit of Rs 50,000 is far from sufficient in today’s inflation-driven economy. “It’s barely enough to cover basic business or personal needs. Yet, we’re being taxed for managing our own liquidity,” Unisame stated.
Furthermore, Unisame raised serious concerns about the lack of consultation before implementing this regressive measure. “Was there any impact study done? Were the small business voices even heard?” the group questioned.
Calling it an anti-business and anti-people move, Unisame is demanding an immediate rollback of the cash withdrawal tax. “It’s time the FBR wakes up and stops squeezing the very backbone of the economy — the SMEs,” Thaver warned.
With public outrage growing, the pressure is now on policymakers to revisit this punitive tax that many see as a direct attack on personal cash freedom.